​EPFO Plans to Raise Auto-Settlement Limit for PF Withdrawals to ₹5 Lakh​

​In a big step towards making the Employees Provident Fund Organization (EPFO) finance more accessible to its millions of staff, the limit for auto settlement of advance claims will be increased from the existing ₹1 lakh to ₹5 lakh. As per the initiative, the process is planned to be streamlined so as to offer ease and efficiency to EPFO members for withdrawals. ​

Approval and Implementation

The proposal was finally approved by Sumita Dawra, Secretary of the Ministry of Labour and Employment, at the 113th meeting of the Executive Committee (EC) of the Central Board of Trustees (CBT) in Srinagar on March 28, 2025. After receiving this endorsement, the recommended list will be forwarded to the CBT to be approved. After being sanctioned, EPFO members would be allowed to take up to ₹5 lakh through the auto-settlement facility. 

Expansion of Auto-Settlement Categories

The auto set – settlement process was first introduced in April 2020 to advance illness – related issues, and it has continued to be enlarged. The limit was also increased to ₹1 lakh in May 2024 from ₹50,000. Following this, EPFO expanded the money that could be claimed in advance for education, marriage and housing purposes. This expansion allows members to have access to their funds on a timely basis for any crucial need without delays.

Efficiency Gains and Technological Integration

It has markedly improved claim processing efficiency through the use of the auto settlement mechanism. Until March 6, 2025, EPFO had done 2.16 crore auto-claims in the current financial year, following a huge leap from 89.52 lakh in 2023-24. Moreover, 95% of its claims are now settled automatically within 3 days, greatly cutting down on processing time, and increasing member satisfaction.

Reduction in Claim Rejections

Also, the claim rejection rate, due to the implementation of the auto-settlement process, has been reduced. In the same light, the rejection ratio has decreased from 50% in the past year to 30%. This improvement results from a more accurate system and a commitment on the part of the organization to reduce errors of claim processing. ​

Introduction of UPI and ATM Withdrawals

As an add-on to increase convenience, EPFO (Employees Provident Fund Organization) is planning to allow Provident Fund (PF) withdrawals using the Unified Payments Interface (UPI) and ATMs. This facility has been approved by the Ministry of Labour and Employment, and it is expected to be operational by the end of May or June 2025. With this development, the members will now be able to access their PF savings instantly and this will be a precedent for other government savings schemes, including the General Provident Fund (GPF) and Public Provident Fund (PPF). ​

Enhanced Financial Accessibility for EPFO Members

Raising the auto settlement limit to ₹5 lakh is set to increase the financial ability for EPFO’s 7.5 crore members. With this move, people are allowed to reach out to a bigger amount of their provident fund savings quickly at points of emergencies like medical emergencies, education, marriages, or home purchases. EPFO aims to provide timely financial support to its members by reducing the dependency on a manual process.

In Closing

This enables EPFO’s decision to increase the auto-settlement limit to ₹5 lakh, and extend the facility of UPI and ATM withdrawal for provision of a seamless and efficient method of access to provident fund resources for millions of Indian employees. These demonstrate EPFO’s attempts to use technology and process improvements to enable member experience and financial well being.​ 

​Along with this, these facilities expedite access to funds and make it clear that EPFO has always worked to increase user convenience at all levels through continuous technological integration. EPFO is the new benchmark for financial institutions that want to digitize their services and shorten processing times while simplifying the withdrawal procedures.​